COMPANY BACKGROUND

Established in 1907, Tata Steel is the world's 6th largest steel company with an
aggregate of annual crude steel production capacity of around 28 million tonnes
having approximately 82,700 employees across the four continents. It was Asia's first
steel company and remains India's largest integrated private sector steel manufacturer.
With investments in Corus, NatSteel and Tata Steel (Thailand), Tata Steel is the
world's second most geographically diversified steel producer, with operations in 24
countries and commercial presence in over 50 countries.
The Company plans to grow and globalise through organic and inorganic routes. To
fulfil its objective of Growth & Globalisation, the five million tonnes per annum
(MTPA) Jamshedpur Works is gearing up to double its capacity by 2010. The
Company is making steady progress on its three greenfield steel projects in the Indian
states of Jharkhand, Orissa and Chhattisgarh, to add 23 million tonnes to its present
capacity. It also plans to set up steel making capacities in Vietnam and Bangladesh.
Through investments in Corus, Millennium Steel (renamed Tata Steel Thailand) and
NatSteel Asia, Singapore, Tata Steel has created a manufacturing and marketing
network in Europe, South East Asia and the Pacific-rim countries. Corus, which
manufactured 18.3 MT of steel in 2006, has operations in the UK, the Netherlands,
Germany, France, Norway and Belgium. Tata Steel (Thailand) is the largest producer
of long steel products in Thailand, with a manufacturing capacity of 1.7 MT. NatSteel
Asia produces about 2 MT of steel products annually across its regional operations in
seven countries.
Tata Steel, through its joint venture with Tata BlueScope Steel Limited, has also
entered the steel building and construction applications market. It has also set up joint
ventures for the development of limestone mines in Thailand, to procure low ash coal
from Australia and coking coal from Mozambique, for the development of iron ore
deposits in Ivory Coast and for setting up of a deep-sea port in coastal Orissa.

The Company is also exploring opportunities in the titanium dioxide business in

Tamil Nadu, India and it will soon be manufacturing high carbon ferro-chrome from
its plant in South Africa.
Tata Steel is one of the few steel companies in the world that is Economic Value
Added (EVA) positive. It was ranked the "World's Best Steel Maker", for the
third time by World Steel Dynamics in its annual listing in February, 2006. Tata
Steel has been conferred the Prime Minister of India's Trophy for the Best
Integrated Steel Plant five times.
Market Share

Secondary
Producers
24%

The production Pie

SAIL
47%

VSP
12%
TISCO
15%

IISCO
2%

MISSION
Consistent with the vision and values of the founder Jamsetji Tata, Tata Steel strives
to strengthen India's industrial base through the effective utilisation of staff and
materials. The means envisaged to achieve this are high technology and productivity,
consistent with modern management practices.
Tata Steel recognises that while honesty and integrity are the essential ingredients of a
strong and stable enterprise, profitability provides the main spark for economic
activity.
VISION
Overall, the Company seeks to scale the heights of excellence in all that it does in an
atmosphere free from fear, and thereby reaffirms its faith in democratic values.
Tata Steel has outlined its vision for 2012 which entails, among other things,
doubling of returns on investment (ROI) from around 16 per cent at present to 32 per
cent by that year. By 2012, the group hopes to be the global steel industry benchmark
for value creation and corporate citizenship

FINANCIAL STRENGTH
Overseas subsidiaries of Tata Steel have contributed Rs 346.96 crore to the groups
net profit of Rs 1,415.54 crore in the third quarter of the current fiscal. For the
quarter ended December 31, Tata Steel, on a standalone basis, reported a net profit of
Rs 1,068.58 crore. The steel major bought the Anglo-Dutch Corus Group last year
for $12.9 billion. The other companies in the group include Natsteel and Tata Steel
Thailand. For the same quarter last year, the group posted a net profit of Rs 1,054.61
crore. The previous years figures do not include the financial results of Tata Steel UK
(which includes the Corus Group) and this period is inclusive of it.
Total income for the quarter ended December 2007, increased to Rs 32,096.03 crore
from Rs 6,071.76 crore. Net interest charges for the quarter were Rs 1,080.88 crore
as against Rs 96.23 crore for the corresponding quarter a year ago. On a standalone
basis, Tata Steels interest component for the quarter was Rs 363 crore. The company

said other than interest charge of Rs 606 crore of Tata Steel UK, the remaining
increase was mainly due to increase in borrowings to fund the acquisition cost of
Corus.
Turnover
The company said that excluding the turnover of Tata Steel UK of Rs 23,867 crore for
the quarter, the group turnover registered an increase of Rs 2,157 crore. This was
mainly due to increases in Tata Steels Indian operations (Rs 472 crore), Natsteel (Rs
1,135 crore) and Tata Steel Thailand (Rs 554 crore). The increase in Tata Steels India
operations was primarily due to increase in prices, whereas the rise in Natsteel and
Tata Steel Thailand was attributed to increase in price and volume.
Total Expenditure
Total expenditure for the quarter ended December 31, 2007 was Rs 28,967 crore,
(including a total expenditure of Rs 22,808 crore of Tata Steel UK), against Rs 4,325
crore during the previous year. The material cost, excluding that of Tata Steel UK of
Rs 11,253 crore, rose to Rs 3,003 crore from Rs 1,919 crore. The other expenditure,
excluding that of Tata Steel UK (Rs 5,053 crore) was Rs 1,395 crore in Q3 FY08
against Rs 1,133 crore in Q3 FY07. Due to rupee appreciation against major foreign
currencies in Q3 FY08, the company had a net exchange gain of Rs 45 crore. The
actuarial gain on funds for employee benefits amounted to Rs 145 crore for the
quarter ended December 31, 2007. The gain represents reduction in pension liability
arising out of higher discount rate, reflecting improved yields on bonds. The company
stock closed at Rs 766.45, down 6.42 per cent over previous close.
D